Beowulf Mining PLC
Extension to agreement
Beowulf Mining PLC (AIM: BEM ; Aktietorget: BEO) ("the Company"), the AIM and
Aktietorget - traded mineral exploration company with several projects in
Sweden announces that it has extended the option and earn-in agreement
requiring Plus-quoted Agricola Resources PLC (PLUS:AGRI) to complete 3,200m of
diamond drilling and a geophysical survey on the Ballek copper-gold-uranium
exploration permits from 30 June 2009 to 31 March 2010.
Agricola has brought the Lulepotten copper-gold deposit at the Ballek joint
venture to a maiden JORC-compliant Inferred Resource stage showing 5.4m tonnes
at 0.8% copper and 0.3 g/t of gold.
Clive Sinclair-Poulton, Chairman of Beowulf said, "Given the difficult market
conditions at present in the exploration industry we have agreed to extend the
date by which Agricola must complete its work programme. We have built a good
relationship with Agricola and want to continue to develop this."
The option and earn-in agreement covers the Ballek 2, 3, 4 and 5 exploration
permits that cover 110 square kilometres of Arjeplog County of Northern Sweden.
Agricola Resources plc can earn up to 70% interest in the Ballek joint venture
by completing an agreed work programme of drilling by 31 March 2010, and
incurring a further US$500,000 exploration expenditure on the JV.
The surveys are intended to identify targets associated with the gravity
anomaly under the claim block, and to identify any iron oxide copper gold
(IOCG) deposits that may be present in the Ballek area.
Subsequent expenditure on the Ballek exploration permits will be made pro rata
to Beowulf and Agricola's respective interests, subject to adjustment in the
event that one party chooses not to fund their proportion of such expenditure.
This agreement enables Beowulf to advance its projects at lower cost in order
to retain more of its cash resources.
Agricola's shares are traded on the PLUS Market and it is a related party to
Beowulf under the AIM Rules since R Young, J O Larsson and A C R Scutt, who are
directors of Beowulf are also directors of Agricola. Since the above agreement
constitutes a related party transaction for the purposes of the AIM Rules, the
Independent Directors of Beowulf - Ed Taylor and Clive Sinclair Poulton
consider, having consulted with the Company's Nominated Adviser, Ruegg & Co
Limited, that the revised terms of the agreement are fair and reasonable
insofar as the Company's shareholders are concerned.
Contact:
Dr. Robert Young, Chief Executive, Beowulf Mining Plc
+44 (0)1353 649 701
Gavin Burnell, Ruegg & Co Limited
+44 (0)207 584 3663
David Scott / Nick, Bealer Alexander David Securities Limited
+44 (0)207 448 9800
Gary Middleton, Lothbury Financial Ltd
07951 603 289